BILL NUMBER: AB 1013	CHAPTERED  09/21/99

	CHAPTER   446
	FILED WITH SECRETARY OF STATE   SEPTEMBER 21, 1999
	APPROVED BY GOVERNOR   SEPTEMBER 21, 1999
	PASSED THE SENATE   SEPTEMBER 10, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 10, 1999
	AMENDED IN SENATE   SEPTEMBER 9, 1999
	AMENDED IN SENATE   AUGUST 26, 1999
	AMENDED IN SENATE   AUGUST 24, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 12, 1999
	AMENDED IN ASSEMBLY   APRIL 27, 1999
	AMENDED IN ASSEMBLY   APRIL 15, 1999

INTRODUCED BY   Assembly Member Scott

                        FEBRUARY 25, 1999

   An act to amend Section 1094.5 of, and to repeal Section 1094.7
of, the Code of Civil Procedure, to amend Sections 3517.6, 18523.1,
18670, 18903, 19056.5, 19141, 19142, 19170.1, 19572.1, 19574, 19582,
19582.1, 19582.6, 19702, 19786, 19798, 19815.41, 19816.2, 19817,
19818.7, 19818.11, 19826.1, 19829, 19832, 19834, 19835, 19836.1,
19841, 19853.1, 19854, 19994, 19994.1, 19994.2, 19997, 19997.3,
19997.4, 19997.5, 19997.6, 19997.7, 19997.8, 19997.11, 19997.13,
22754, and 22825.3 of, to add Sections 19995.5 and 20405.2 to, and to
repeal Sections 3517.65, 18670.2, 18903.2, 19056.6, 19141.3,
19142.2, 19170.3, 19173.3, 19175.6, 19570.3, 19572.3, 19574.6,
19576.2, 19576.4, 19582.2, 19582.3, 19582.7, 19702.7, 19786.2,
19798.2, 19815.42, 19816.22, 19817.8, 19818.15, 19828.2, 19829.2,
19832.2, 19834.2, 19835.2, 19841.2, 19853.3, 19854.2, 19994.6,
19994.7, 19994.8, 19997.40, 19997.43, 19997.44, 19997.45, 19997.46,
19997.47, 19997.48, 19997.51, 19997.53, 22754.5, 22754.7, and
22754.11 of, the Government Code, relating to state employees, making
an appropriation therefor, and declaring the urgency thereof, to
take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1013, Scott.  State employees.
   (1) Existing law contains various provisions relating to civil
service and employer-employee relations between the state and its
employees, and contains comparable provisions that apply to state
employees in State Bargaining Unit 5, 6, 8, 16, or 19.
   This bill, among other things, would repeal certain of those
provisions relating to minor discipline, layoffs, reinstatements,
probationary periods, salary ranges and adjustments, holidays,
transfers, application of the Administrative Procedure Act in the
adoption of regulations, and demonstration projects as those
provisions apply to State Bargaining Units 16 and 19, and would
repeal certain of those provisions relating to broadbanding as those
provisions apply to State Bargaining Unit 16.
   This bill would create in the State Treasury the State Employee
Scholarship Fund, a continuously appropriated fund, to establish a
program for career advancement to assist eligible state employees to
participate in educational programs.  The fund would be administered
by the Department of Personnel Administration.  The bill would
provide that moneys in the fund shall be allocated from the amount
negotiated in memoranda of understanding between the state and
recognized employee organizations, and appropriated by the
Legislature for the 2000-01 fiscal year.  The fund would cease to
exist on June 30, 2001, unless the existence of the fund is extended
by statute and that statute is enacted and becomes effective prior to
that date.
   (2) Existing provisions governing the Public Employees' Retirement
System authorize certain state safety members to irrevocably elect
to remain subject to the miscellaneous or industrial service benefit
and contribution rate, as specified.  The Public Employees'
Retirement Fund is continuously appropriated for the payments
required to be made to members of the system.
   This bill would specify that a member who made that election may
elect to be subject to the state safety formula on or after January
1, 2000, as specified.  Because the bill would enlarge the class of
persons eligible for that formula, it would make an appropriation.
   (3) Existing provisions governing the Public Employees' Retirement
System prohibits state employees, as specified, from receiving any
portion of the employer's contribution with respect to health care
benefits unless they are credited with 10 years of state service at
retirement.
   This bill would revise the state employees to whom those
provisions apply, and enact a similar restriction with respect to
dental benefits, as specified.
   (4) Existing law, the Public Employees' Medical and Hospital Care
Act, provides health benefits plan coverage to public employees and
annuitants meeting the eligibility requirements prescribed by the
Board of Administration of the Public Employees' Retirement System.
Existing law revises the definition of "eligible employee" for the
purposes of the act as it applies to state employees in State
Bargaining Units 8 and 16, and revises the definition of "eligible
family member" for the purposes of the act as it applies to state
employees in State Bargaining Units 8, 16, and 19.
   This bill would repeal these revised definitions of "eligible
employee" and "eligible family member."
   (5) Existing law provides that if any provision of a memorandum of
understanding reached between the state employer and a recognized
employee organization representing state civil service employees
requires the expenditure of funds, those provisions of the memorandum
of understanding shall not become effective unless approved by the
Legislature in the annual Budget Act.
   This bill would approve provisions of specified memoranda of
understanding entered into between the state employer and specified
employee organizations, and would provide that the provisions of any
memorandum of understanding that require the expenditure of funds
shall become effective even if the provisions of the memorandum of
understanding are approved by the Legislature in legislation other
than the annual Budget Act.
   This bill would provide that any provision in a memorandum of
understanding approved by any section of this bill, and which
requires the expenditure of funds, shall not take effect unless funds
for these provisions are specifically appropriated by the
Legislature, and would provide that if funds for these provisions are
not specifically appropriated by the Legislature, all or any part of
the memorandum of understanding may be declared null and void by any
affected employee organization.
   (6) This bill would appropriate $200,000 from the General Fund for
transfer to the State Employee Scholarship Fund to provide for the
establishment and administration of the state employee scholarship
program.
  (7) The bill would declare that it is to take effect immediately as
an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1094.5 of the Code of Civil Procedure is
amended to read:
   1094.5.  (a) Where the writ is issued for the purpose of inquiring
into the validity of any final administrative order or decision made
as the result of a proceeding in which by law a hearing is required
to be given, evidence is required to be taken, and discretion in the
determination of facts is vested in the inferior tribunal,
corporation, board, or officer, the case shall be heard by the court
sitting without a jury.  All or part of the record of the proceedings
before the inferior tribunal, corporation, board, or officer may be
filed with the petition, may be filed with respondent's points and
authorities, or may be ordered to be filed by the court.  Except when
otherwise prescribed by statute, the cost of preparing the record
shall be borne by the petitioner.  Where the petitioner has proceeded
pursuant to Section 68511.3 of the Government Code and the Rules of
Court implementing that section and where the transcript is necessary
to a proper review of the administrative proceedings, the cost of
preparing the transcript shall be borne by the respondent.  Where the
party seeking the writ has proceeded pursuant to Section 1088.5, the
administrative record shall be filed as expeditiously as possible,
and may be filed with the petition, or by the respondent after
payment of the costs by the petitioner, where required, or as
otherwise directed by the court.  If the expense of preparing all or
any part of the record has been borne by the prevailing party, the
expense shall be taxable as costs.
   (b) The inquiry in such a case shall extend to the questions
whether the respondent has proceeded without, or in excess of
jurisdiction; whether there was a fair trial; and whether there was
any prejudicial abuse of discretion. Abuse of discretion is
established if the respondent has not proceeded in the manner
required by law, the order or decision is not supported by the
findings, or the findings are not supported by the evidence.
   (c) Where it is claimed that the findings are not supported by the
evidence, in cases in which the court is authorized by law to
exercise its independent judgment on the evidence, abuse of
discretion is established if the court determines that the findings
are not supported by the weight of the evidence.  In all other cases,
abuse of discretion is established if the court determines that the
findings are not supported by substantial evidence in the light of
the whole record.
   (d) Notwithstanding subdivision (c), in cases arising from private
hospital boards or boards of directors of districts organized
pursuant to The Local Hospital District Law, Division 23 (commencing
with Section 32000) of the Health and Safety Code or governing bodies
of municipal hospitals formed pursuant to Article 7 (commencing with
Section 37600) or Article 8 (commencing with Section 37650) of
Chapter 5 of Division 3 of Title 4 of the Government Code, abuse of
discretion is established if the court determines that the findings
are not supported by substantial evidence in the light of the whole
record.  However, in all cases in which the petition alleges
discriminatory actions prohibited by Section 1316 of the Health and
Safety Code, and the plaintiff makes a preliminary showing of
substantial evidence in support of that allegation, the court shall
exercise its independent judgment on the evidence and abuse of
discretion shall be established if the court determines that the
findings are not supported by the weight of the evidence.
   (e) Where the court finds that there is relevant evidence that, in
the exercise of reasonable diligence, could not have been produced
or that was improperly excluded at the hearing before respondent, it
may enter judgment as provided in subdivision (f) remanding the case
to be reconsidered in the light of that evidence; or, in cases in
which the court is authorized by law to exercise its independent
judgment on the evidence, the court may admit the evidence at the
hearing on the writ without remanding the case.
   (f) The court shall enter judgment either commanding respondent to
set aside the order or decision, or denying the writ.  Where the
judgment commands that the order or decision be set aside, it may
order the reconsideration of the case in the light of the court's
opinion and judgment and may order respondent to take such further
action as is specially enjoined upon it by law, but the judgment
shall not limit or control in any way the discretion legally vested
in the respondent.
   (g) Except as provided in subdivision (h), the court in which
proceedings under this section are instituted may stay the operation
of the administrative order or decision pending the judgment of the
court, or until the filing of a notice of appeal from the judgment or
until the expiration of the time for filing the notice, whichever
occurs first.  However, no such stay shall be imposed or continued if
the court is satisfied that it is against the public interest.  The
application for the stay shall be accompanied by proof of service of
a copy of the application on the respondent.  Service shall be made
in the manner provided by Title 5 (commencing with Section 405) of
Part 2 or Chapter 5 (commencing with Section 1010) of Title 14 of
Part 2.  If an appeal is taken from a denial of the writ, the order
or decision of the agency shall not be stayed except upon the order
of the court to which the appeal is taken. However, in cases where a
stay is in effect at the time of filing the notice of appeal, the
stay shall be continued by operation of law for a period of 20 days
from the filing of the notice.  If an appeal is taken from the
granting of the writ, the order or decision of the agency is stayed
pending the determination of the appeal unless the court to which the
appeal is taken shall otherwise order.  Where any final
administrative order or decision is the subject of proceedings under
this section, if the petition shall have been filed while the penalty
imposed is in full force and effect, the determination shall not be
considered to have become moot in cases where the penalty imposed by
the administrative agency has been completed or complied with during
the pendency of the proceedings.
   (h) (1) The court in which proceedings under this section are
instituted may stay the operation of the administrative order or
decision of any licensed hospital or any state agency made after a
hearing required by statute to be conducted under the Administrative
Procedure Act, as set forth in Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code,
conducted by the agency itself or an administrative law judge on the
staff of the Office of Administrative Hearings pending the judgment
of the court, or until the filing of a notice of appeal from the
judgment or until the expiration of the time for filing the notice,
whichever occurs first.  However, the stay shall not be imposed or
continued unless the court is satisfied that the public interest will
not suffer and that the licensed hospital or agency is unlikely to
prevail ultimately on the merits.  The application for the stay shall
be accompanied by proof of service of a copy of the application on
the respondent.  Service shall be made in the manner provided by
Title 5 (commencing with Section 405) of Part 2 or Chapter 5
(commencing with Section 1010) of Title 14 of Part 2.
   (2) The standard set forth in this subdivision for obtaining a
stay shall apply to any administrative order or decision of an agency
that issues licenses pursuant to Division 2 (commencing with Section
500) of the Business and Professions Code or pursuant to the
Osteopathic Initiative Act or the Chiropractic Initiative Act.  With
respect to orders or decisions of other state agencies, the standard
in this subdivision shall apply only when the agency has adopted the
proposed decision of the administrative law judge in its entirety or
has adopted the proposed decision but reduced the proposed penalty
pursuant to subdivision (b) of Section 11517 of the Government Code;
otherwise the standard in subdivision (g) shall apply.
   (3) If an appeal is taken from a denial of the writ, the order or
decision of the hospital or agency shall not be stayed except upon
the order of the court to which the appeal is taken.  However, in
cases where a stay is in effect at the time of filing the notice of
appeal, the stay shall be continued by operation of law for a period
of 20 days from the filing of the notice. If an appeal is taken from
the granting of the writ, the order or decision of the hospital or
agency is stayed pending the determination of the appeal unless the
court to which the appeal is taken shall otherwise order.  Where any
final administrative order or decision is the subject of proceedings
under this section, if the petition shall have been filed while the
penalty imposed is in full force and effect, the determination shall
not be considered to have become moot in cases where the penalty
imposed by the administrative agency has been completed or complied
with during the pendency of the proceedings.
   (i) Any administrative record received for filing by the clerk of
the court may be disposed of as provided in Sections 1952, 1952.2,
and 1952.3.
   (j) Effective January 1, 1996, this subdivision shall apply to
state employees in State Bargaining Unit 5.  This subdivision shall
apply to state employees in State Bargaining Unit 8.  For purposes of
this section, the court is not authorized to review any disciplinary
decisions reached pursuant to Section 19576.1 or 19576.5 of the
Government Code.
  SEC. 2.  Section 1094.7 of the Code of Civil Procedure is repealed.

  SEC. 3.  Section 3517.6 of the Government Code is amended to read:

   3517.6.  (a) (1) In any case where the provisions of Section 70031
of the Education Code, or subdivision (i) of Section 3513, or
Section 14876, 18714, 19080.5, 19100, 19143, 19261, 19818.16,
19819.1, 19820, 19822, 19824, 19826, 19827, 19828, 19829, 19830,
19831, 19832, 19833, 19834, 19835, 19836, 19837, 19838, 19839, 19840,
19841, 19842, 19843, 19844, 19845, 19846, 19847, 19848, 19849,
19849.1, 19849.4, 19850.1, 19850.2, 19850.3, 19850.4, 19850.5,
19850.6, 19851, 19853, 19854, 19856, 19856.1, 19858.1, 19858.2,
19859, 19860, 19861, 19862, 19862.1, 19863, 19863.1, 19864, 19866,
19869, 19870, 19871, 19871.1, 19872, 19873, 19874, 19875, 19876,
19877, 19877.1, 19878, 19879, 19880, 19880.1, 19881, 19882, 19883,
19884, 19885, 19887, 19887.1, 19887.2, 19888, 19990, 19991, 19991.1,
19991.2, 19991.3, 19991.4, 19991.5, 19991.6, 19991.7, 19992, 19992.1,
19992.2, 19992.3, 19992.4, 19993, 19994.1, 19994.2, 19994.3,
19994.4, 19995, 19995.1, 19995.2, 19995.3, 19996.1, 19996.2, 19998,
19998.1, 20796, 21600, 21602, 21604, 21605, 22825, or 22825.1 are in
conflict with the provisions of a memorandum of understanding, the
memorandum of understanding shall be controlling without further
legislative action.
   (2) Notwithstanding paragraph (1), this paragraph shall apply only
to state employees in State Bargaining Unit 5.  In any case where
the provisions of Section 70031 of the Education Code, or subdivision
(i) of Section 3513, or Section 14876, 18714, 19080.5, 19100, 19143,
19261, 19576.1, 19818.16, 19819.1, 19820, 19822, 19824, 19826,
19827, 19828, 19829, 19830, 19831, 19832, 19833, 19834, 19835, 19836,
19837, 19838, 19839, 19840, 19841, 19842, 19843, 19844, 19845,
19846, 19847, 19848, 19849, 19849.1, 19849.4, 19850.1, 19850.2,
19850.3, 19850.4, 19850.5, 19850.6, 19851, 19853, 19854, 19856,
19856.1, 19858.1, 19858.2, 19859, 19860, 19861, 19862, 19862.1,
19863, 19863.1, 19864, 19866, 19869, 19870, 19871, 19871.1, 19872,
19873, 19874, 19875, 19876, 19877, 19877.1, 19878, 19879, 19880,
19880.1, 19881, 19882, 19883, 19884, 19885, 19887, 19887.1, 19887.2,
19888, 19990, 19991, 19991.1, 19991.2, 19991.3, 19991.4, 19991.5,
19991.6, 19991.7, 19992, 19992.1, 19992.2, 19992.3, 19992.4, 19993,
19994.1, 19994.2, 19994.3, 19994.4, 19995, 19995.1, 19995.2, 19995.3,
19996.1, 19996.2, 19998, 19998.1, 20796, 21600, 21602, 21604, 21605,
22825, or 22825.1 are in conflict with the provisions of a
memorandum of understanding, the memorandum of understanding shall be
controlling without further legislative action.
   (3) Notwithstanding paragraph (1), this paragraph shall apply only
to state employees in State Bargaining Unit 8.  In any case where
the provisions of Section 70031 of the Education Code, or subdivision
(i) of Section 3513, or Section 14876, 18714, 19080.5, 19100, 19143,
19261, 19576.1, 19582.1, 19175.1, 19818.16, 19819.1, 19820, 19822,
19824, 19826, 19827, 19828, 19829, 19830, 19831, 19832, 19833, 19834,
19835, 19836, 19837, 19838, 19839, 19840, 19841, 19842, 19843,
19844, 19845, 19846, 19847, 19848, 19849, 19849.1, 19849.4, 19850.1,
19850.2, 19850.3, 19850.4, 19850.5, 19850.6, 19851, 19853, 19854,
19856, 19856.1, 19858.1, 19858.2, 19859, 19860, 19861, 19862,
19862.1, 19863, 19863.1, 19864, 19866, 19869, 19870, 19871, 19871.1,
19872, 19873, 19874, 19875, 19876, 19877, 19877.1, 19878, 19879,
19880, 19880.1, 19881, 19882, 19883, 19884, 19885, 19887, 19887.1,
19887.2, 19888, 19990, 19991, 19991.1, 19991.2, 19991.3, 19991.4,
19991.5, 19991.6, 19991.7, 19992, 19992.1, 19992.2, 19992.3, 19992.4,
19993, 19994.1, 19994.2, 19994.3, 19994.4, 19995, 19995.1, 19995.2,
19995.3, 19996.1, 19996.2, 19998, 19998.1, 20796, 21600, 21602,
21604, 21605, 22825, or 22825.1 are in conflict with the provisions
of a memorandum of understanding, the memorandum of understanding
shall be controlling without further legislative action.
   (b) In any case where the provisions of Section 19997.2, 19997.3,
19997.8, 19997.9, 19997.10, 19997.11, 19997.12, 19997.13, or 19997.14
are in conflict with the provisions of a memorandum of
understanding, the terms of the memorandum of understanding shall be
controlling unless the State Personnel Board finds those terms to be
inconsistent with merit employment principles as provided for by
Article VII of the California Constitution.  Where this finding is
made, the provisions of the Government Code shall prevail until those
affected sections of the memorandum of understanding are
renegotiated to resolve the inconsistency.  If any provision of the
memorandum of understanding requires the expenditure of funds, those
provisions of the memorandum of understanding shall not become
effective unless approved by the Legislature in the annual Budget
Act.  If any provision of the memorandum of understanding requires
legislative action to permit its implementation by amendment of any
section not cited above, those provisions of the memorandum of
understanding shall not become effective unless approved by the
Legislature.
  SEC. 4.  Section 3517.65 of the Government Code is repealed.
  SEC. 5.  Section 18523.1 of the Government Code is amended to read:

   18523.1.  (a) Notwithstanding Section 18523, this section shall
apply only to state employees in State Bargaining Unit 6.
   (b) "Class" means a group of positions sufficiently similar with
respect to duties and responsibilities that the same title may
reasonably and fairly be used to designate each position allocated to
the class and that substantially the same tests of fitness may be
used and that substantially the same minimum qualifications may be
required and that the same schedule of compensation may be made to
apply with equity.
   (c) The board may also establish "broadband" classes for which the
same general title may be used to designate each position allocated
to the class and which may include more than one level or more than
one specialty area within the same general field or work.  In
addition to the minimum qualifications for each broadband class,
other job-related qualifications may be required for particular
positions within the class.  When the board establishes a broadband
class, these levels and specialty areas shall be described in the
class specification, and the board shall specify any instances in
which these levels and speciality areas are to be treated as separate
classes for purposes of applying other provisions of law.
  SEC. 6.  Section 18670 of the Government Code is amended to read:
   18670.  (a) The board may hold hearings and make investigations
concerning all matters relating to the enforcement and effect of this
part and rules prescribed hereunder.  It may inspect any state
institution, office, or other place of employment affected by this
part to ascertain whether this part and the board rules are obeyed.
   The board shall make investigations and hold hearings at the
direction of the Governor or the Legislature or upon the petition of
an employee or a citizen concerning the enforcement and effect of
this part and to enforce the observance of Article VII of the
Constitution and of this part and the rules made under this part.
   (b) Effective January 1, 1996, this subdivision shall apply only
to state employees in State Bargaining Unit 5.  For purposes of
subdivision (a), any discipline, as defined by Section 19576.1, is
not subject to either a board investigation or hearing.  Board review
shall be limited to acceptance or rejection of discipline imposed
pursuant to Section 19576.1.
   (c) This subdivision shall apply only to state employees in State
Bargaining Unit 8.  For the purposes of subdivision (a), any
discipline, as defined by the memorandum of understanding or Section
19576.5, is not subject to either a board investigation or hearing.

  SEC. 7.  Section 18670.2 of the Government Code is repealed.
  SEC. 8.  Section 18903 of the Government Code is amended to read:
   18903.  (a) (1) For each class there shall be maintained a general
reemployment list consisting of the names of all persons who have
occupied positions with probationary or permanent status in the class
and who have been legally laid off or demoted in lieu of layoff.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 6  or 8.  For each entry
level class there shall be maintained a general reemployment list
consisting of the names of all persons who have occupied positions
with probationary or permanent status in the class and who have been
legally laid off, demoted in lieu of layoff, or transferred in lieu
of layoff.
   (3) Notwithstanding paragraph (1), this paragraph shall only apply
to state employees in State Bargaining Unit 5.  For each class there
shall be maintained a general reemployment list consisting of the
names of all persons who have occupied positions with probationary or
permanent status in the class and who have been legally laid off,
demoted in lieu of layoff, or transferred in lieu of layoff.
   (b) Within one year from the date of his or her resignation in
good standing, or his or her voluntary demotion, the name of an
employee who had probationary or permanent status may be placed on
the general reemployment list with the consent of the appointing
power and the board.  The general reemployment list may also contain
the names of persons placed thereon by the board in accordance with
other provisions of this part.
  SEC. 9.  Section 18903.2 of the Government Code is repealed.
  SEC. 10.  Section 19056.5 of the Government Code is amended to
read:
   19056.5.  (a) Notwithstanding any other provision in this part and
except as provided in subdivision (b), if the appointment is to be
made from a general reemployment list, the names of the three persons
with the highest standing on the list shall be certified to the
appointing power.
   (b) Notwithstanding subdivision (a), this subdivision shall apply
to state employees in State Bargaining Unit 6  or 8.  If the
appointment is to be made from a general reemployment list, the name
of the person with the highest standing on the list shall be
certified to the appointing power.
  SEC. 11.  Section 19056.6 of the Government Code is repealed.
  SEC. 12.  Section 19141 of the Government Code is amended to read:

   19141.  (a) This section applies only to a permanent employee, or
an employee who previously had permanent status and who, since that
permanent status, has had no break in the continuity of his or her
state service due to a permanent separation.  As used in this
section, "former position" is defined as in Section 18522, or, if the
appointing power to which reinstatement is to be made and the
employee agree, a vacant position in any department, commission, or
state agency for which he or she is qualified at substantially the
same level.
   (b) Within the periods of time specified below, an employee who
vacates a civil service position to accept an appointment to an
exempt position shall be reinstated to his or her former position at
the termination either by the employee or appointing power of the
exempt appointment, provided he or she (1) accepted the appointment
without a break in the continuity of state service, and (2) requests
in writing reinstatement of the appointing power of his or her former
position within 10 working days after the effective date of the
termination.
   (c) The reinstatement may be requested by the employee only within
the following periods of time:
   (1) At any time after the effective date of the exempt appointment
if the employee was appointed under one of the following:
   (A) Subdivision (a), (b), (c), (d), (e), (f), (g), or (m) of
Section 4 of Article VII of the California Constitution.
   (B) Section 2.1 of Article IX of the California Constitution.
   (C) Section 22 of Article XX of the California Constitution.
   (D) To an exempt position under the same appointing power as the
former position even though a shorter period of time may be otherwise
specified for that appointment.
   (2) Within six months after the effective date of the exempt
appointment if appointed under subdivision (h), (i), (k), or (l) of
Section 4 of Article VII of the California Constitution.
   (3) (A) Within four years after the effective date of an exempt
appointment if appointed under any other authority.
   (B) Within four years after the effective date of an exempt
appointment if appointed under any other authority.  Notwithstanding
subparagraph (A), this subparagraph shall apply to state employees in
State Bargaining Unit 5, 6, or 8.
   (d) An employee who vacates his or her civil service position to
accept an assignment as a member, inmate, or patient helper under
subdivision (j) of Section 4 of Article VII of the California
Constitution shall not have a right to reinstatement.
   (e) An employee who is serving under an exempt appointment retains
a right of reinstatement when he or she accepts an extension of that
exempt appointment or accepts a new exempt appointment, provided the
extension or new appointment is made within the specified
reinstatement time limit and there is no break in the continuity of
state service.  The period for which that right is retained is for
the period applicable to the extended or new exempt appointment as if
that appointment had been made on the date of the initial exempt
appointment.
   (f) When an employee exercises his or her right of reinstatement
and returns to his or her former position, the service while under an
exempt appointment shall be deemed to be time served in the former
position for the purpose of determining his or her eligibility for
merit salary increases.
   (g) If the termination of an exempt appointment is for a reason
contained in Section 19997 and the employee does not have a right to
reinstatement, he or she shall have his or her name placed on the
departmental and general reemployment lists for the class of his or
her former position.
  SEC. 13.  Section 19141.3 of the Government Code is repealed.
  SEC. 14.  Section 19142 of the Government Code is amended to read:

   19142.  (a) Every person accepts and holds a position in the state
civil service subject to mandatory reinstatement of another person.

   (b) (1) Upon reinstatement of a person any necessary separations
are effected under the provisions of Section 19997.3 governing layoff
and demotion except that (A) an employee who is not to be separated
from state service need not receive advance notification as provided
in Section 19997.13, and (B) seniority shall not be counted as
provided in Section 19997.3 when this would result in the layoff of
the person who has the reinstatement right.  Under such a
circumstance, qualifying service in classes at substantially the same
or higher salary level is the only state service that shall be
counted for purposes of determining who is to be separated.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 5, 6, or 8.  Upon
reinstatement of a person any necessary separations are effected
under Section 19997.3 governing layoff and demotion except that an
employee who is not to be separated from state service need not
receive advance notification as provided in Section 19997.13.
  SEC. 15.  Section 19142.2 of the Government Code is repealed.
  SEC. 16.  Section 19170.1 of the Government Code is amended to
read:
   19170.1.  (a) Notwithstanding Section 19170 for state employees in
State Bargaining Unit 5, 6, or 8, the board shall establish for each
class the length of the probationary period.  The probationary
period that shall be served upon appointment shall be not less than
six months nor more than two years.
   (b) The board may provide by rule:  (1) for increasing the length
of an individual probationary period by adding thereto periods of
time during which an employee, while serving as a probationer, is
absent from his or her position; or (2) for requiring an additional
period not to exceed the length of the original probationary period
when a probationary employee returns after an extended period of
absence and the remainder of the probationary period is insufficient
to evaluate his or her current performance.
  SEC. 17.  Section 19170.3 of the Government Code is repealed.
  SEC. 18.  Section 19173.3 of the Government Code is repealed.
  SEC. 19.  Section 19175.6 of the Government Code is repealed.
  SEC. 20.  Section 19570.3 of the Government Code is repealed.
  SEC. 21.  Section 19572.1 of the Government Code is amended to
read:
   19572.1.  (a) Notwithstanding Section 19572, this section shall
apply to state employees in State Bargaining Unit 8.
   (b) Disciplinary actions pursuant to Section 19576.5 shall be for
just cause or one or more of the following causes for discipline:
   (1) Fraud in securing appointment.
   (2) Incompetency.

       (3) Inefficiency.
   (4) Inexcusable neglect of duty.
   (5) Insubordination.
   (6) Dishonesty.
   (7) Drunkenness on duty.
   (8) Intemperance.
   (9) Addiction to the use of controlled substances.
   (10) Inexcusable absence without leave.
   (11) Conviction of a felony or conviction of a misdemeanor
involving moral turpitude.  A plea or verdict of guilty, or a
conviction following a plea of nolo contendere, to a charge of a
felony of any offense involving moral turpitude is deemed to be a
conviction within the meaning of this section.
   (12) Immorality.
   (13) Discourteous treatment of the public or other employees.
   (14) Improper political activity.
   (15) Willful disobedience.
   (16) Misuse of state property.
   (17) Violation of this part or board rule.
   (18) Violation of the prohibitions set forth in accordance with
Section 19990.
   (19) Refusal to take and subscribe any oath or affirmation that is
required by law in connection with the employment.
   (20) Other failure of good behavior either during or outside of
duty hours that is of such a nature that it causes discredit to the
appointing authority of the person's employment.
   (21) Any negligence, recklessness, or intentional act that results
in the death of a patient of a state hospital serving the mentally
disabled or the developmentally disabled.
   (22) The use during duty hours, for training or target practice,
of any material that is not authorized therefor by the appointing
power.
   (23) Unlawful discrimination, including harassment, on the basis
of race, religious creed, color, national origin, ancestry,
disability, marital status, sex, or age, against the public or other
employees while acting in the capacity of a state employee.
   (24) Unlawful retaliation against any other state officer or
employee or member of the public who in good faith reports,
discloses, divulges, or otherwise brings to the attention of, the
Attorney General, or any other appropriate authority, any facts or
information relative to actual or suspected violation of any law of
this state or the United States occurring on the job or directly
related thereto.
   (c) If provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if those provisions
of a memorandum of understanding require the expenditure of funds,
the provision shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 22.  Section 19572.3 of the Government Code is repealed.
  SEC. 23.  Section 19574 of the Government Code is amended to read:

   19574.  (a) The appointing power, or its authorized
representative, may take adverse action against an employee for one
or more of the causes for discipline specified in this article.
Adverse action is valid only if a written notice is served on the
employee prior to the effective date of the action, as defined by
board rule. The notice shall be served upon the employee either
personally or by mail and shall include:  (1) a statement of the
nature of the adverse action; (2) the effective date of the action;
(3) a statement of the reasons therefor in ordinary language; (4) a
statement advising the employee of the right to answer the notice
orally or in writing; and (5) a statement advising the employee of
the time within which an appeal must be filed.  The notice shall be
filed with the board not later than 15 calendar days after the
effective date of the adverse action.
   (b) Effective January 1, 1996, this subdivision shall apply only
to state employees in State Bargaining Unit 5.  This section shall
not apply to discipline as defined by Section 19576.1.
   (c) This subdivision shall apply only to state employees in State
Bargaining Unit 8.  This section shall not apply to minor discipline,
as defined by Section 19576.5 or a memorandum of understanding.
  SEC. 24.  Section 19574.6 of the Government Code is repealed.
  SEC. 25.  Section 19576.2 of the Government Code is repealed.
  SEC. 26.  Section 19576.4 of the Government Code is repealed.
  SEC. 27.  Section 19582 of the Government Code is amended to read:

   19582.  (a) Hearings may be held by the board, or by any
authorized representative, but the board shall render the decision
that in its judgment is just and proper.
   During a hearing, after the appointing authority has completed the
opening statement or the presentation of evidence, the employee,
without waiving his or her right to offer evidence in the event the
motion is not granted, may move for a dismissal of the charges.
   If it appears that the evidence presented supports the granting of
the motion as to some but not all of the issues involved in the
action, the board or the authorized representative shall grant the
motion as to those issues and the action shall proceed as to the
issues remaining.  Despite the granting of the motion, no judgment
shall be entered prior to a final determination of the action on the
remaining issues, and shall be subject to final review and approval
by the board.
   (b) If a contested case is heard by an authorized representative,
he or she shall prepare a proposed decision in a form that may be
adopted as the decision in the case.  A copy of the proposed decision
shall be filed by the board as a public record and furnished to each
party within 10 days after the proposed decision is filed with the
board.  The board itself may adopt the proposed decision in its
entirety, may remand the proposed decision, or may reduce the adverse
action set forth therein and adopt the balance of the proposed
decision.
   (c) If the proposed decision is not remanded or adopted as
provided in subdivision (b), each party shall be notified of the
action, and the board itself may decide the case upon the record,
including the transcript, with or without taking any additional
evidence, or may refer the case to the same or another authorized
representative to take additional evidence.  If the case is so
assigned to an authorized representative, he or she shall prepare a
proposed decision as provided in subdivision (b) upon the additional
evidence and the transcript and other papers that are part of the
record of the prior hearing.  A copy of the proposed decision shall
be furnished to each party.  The board itself shall decide no case
provided for in this subdivision without affording the parties the
opportunity to present oral and written argument before the board
itself.  If additional oral evidence is introduced before the board
itself, no board member may vote unless he or she heard the
additional oral evidence.
   (d) In arriving at a decision or a proposed decision, the board or
its authorized representative may consider any prior suspension or
suspensions of the appellant by authority of any appointing power, or
any prior proceedings under this article.
   (e) The decision shall be in writing and contain findings of fact
and the adverse action, if any.  The findings may be stated in the
language of the pleadings or by reference thereto.  Copies of the
decision shall be served on the parties personally or by mail.
   (f) This section shall not apply to minor discipline, as defined
in a memorandum of understanding or by Section 19576.5 for state
employees in State Bargaining Unit 8.
  SEC. 28.  Section 19582.1 of the Government Code is amended to
read:
   19582.1.  Notwithstanding Section 19582, this section shall apply
to state employees in State Bargaining Unit 8.
   (a) The board's review of decisions of minor discipline, as
defined by a memorandum of understanding or by Section 19576.5, shall
be limited to either adopting the penalty of the proposed decision
or revoking the disciplinary action in its entirety.
   (b) The board's review of decisions of discipline, including minor
discipline, shall not impose any discipline against an employee that
would jeopardize the employee's status under the federal Fair Labor
Standards Act, as set forth pursuant to Section 13(a)(1) of The Fair
Labor Standards Act of 1938, as amended (Title 29, Section 213(a)(1),
United States Code) and in Part 54 of Title 29 of the Code of
Federal Regulations, as defined and delimited on the effective date
of this section and as those provisions maybe amended in the future.

   (c) If provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if such provisions of
a memorandum of understanding require the expenditure of funds, the
provision shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 29.  Section 19582.2 of the Government Code is repealed.
  SEC. 30.  Section 19582.3 of the Government Code is repealed.
  SEC. 31.  Section 19582.6 of the Government Code is amended to
read:
   19582.6.  (a) Notwithstanding Section 19582.5, this section shall
apply only to state employees in State Bargaining Unit 8.
   (b) The board may designate certain of its decisions as
precedents. Precedential decisions shall not be subject to Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3.  The
board may provide by rule for the reconsideration of a previously
issued decision to determine whether or not it shall be designated as
a precedent decision.  All decisions designated as precedents shall
be published in a manner determined by the board.
   (c) For the purpose of this section, a decision reached pursuant
to Section 19576.2 is not subject to board precedential decision, and
the board may not adopt that decision as a precedential decision.
  SEC. 32.  Section 19582.7 of the Government Code is repealed.
  SEC. 33.  Section 19702 of the Government Code is amended to read:

   19702.  (a) A person shall not be discriminated against under this
part because of sex, race, religious creed, color, national origin,
ancestry, marital status, physical disability, or mental disability.
A person shall not be retaliated against because he or she has
opposed any practice made an unlawful employment practice, or made a
charge, testified, assisted, or participated in any manner in an
investigation, proceeding, or hearing under this part.  For purposes
of this article, "discrimination" includes harassment.  This
subdivision is declaratory of existing law.
   (b) As used in this section, "physical disability" includes, but
is not limited to, impairment of sight, hearing, or speech, or
impairment of physical ability because of amputation or loss of
function or coordination, or any other health impairment that
requires special education or related services.
   (c) As used in this section, "mental disability" includes, but is
not limited to, any mental or psychological disorder, such as mental
retardation, organic brain syndrome, emotional or mental illness, and
specific learning disabilities.
   (d) Notwithstanding subdivisions (b) and (c), if the definition of
disability used in the Americans with Disabilities Act of 1990
(Public Law 101-336) would result in broader protection of the civil
rights of individuals with a mental disability or physical
disability, as defined in subdivision (b) or (c), then that broader
protection shall be deemed incorporated by reference into, and shall
prevail over conflicting provisions of, the definitions in
subdivisions (b) and (c).  The definitions of subdivisions (b) and
(c) shall not be deemed to refer to or include conditions excluded
from the federal definition of "disability" pursuant to Section 511
of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec.
12211).
   (e) If the board finds that a person has engaged in discrimination
under this part, and it appears that this practice consisted of acts
described in Section 243.4, 261, 262, 286, 288, 288a, or 289 of the
Penal Code, the board, with the consent of the complainant, shall
provide the local district attorney's office with a copy of its
decision and order.
   (f) (1) If the board finds that discrimination has occurred in
violation of this part, the board shall issue and cause to be served
on the appointing authority an order requiring the appointing
authority to cause the discrimination to cease and desist and to take
any action, including, but not limited to, hiring, reinstatement, or
upgrading of employees, with or without backpay, and compensatory
damages, which, in the judgment of the board, will effectuate the
purposes of this part.  Consistent with this authority, the board may
establish rules governing the award of compensatory damages.  The
order shall include a requirement of reporting the manner of
compliance.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 6 or 8.  If the board finds
that discrimination has occurred in violation of this part, the board
shall issue and cause to be served on the appointing authority an
order requiring the appointing authority to cause the discrimination
to cease and desist and to take any action, including, but not
limited to, hiring, reinstatement, or upgrading of employees, with or
without backpay, adding additional seniority, and compensatory
damages, which, in the judgment of the board, will effectuate the
purposes of this part.  Consistent with this authority, the board may
establish rules governing the award of compensatory damages.  The
order shall include a requirement of reporting the manner of
compliance.
   (g) Any person claiming discrimination within the state civil
service may submit a complaint that shall be in writing and set forth
the particulars of the alleged discrimination, the name of the
appointing authority, the persons alleged to have committed the
unlawful discrimination, and any other information that may be
required by the board.  The complaint shall be filed with the
appointing authority or, in accordance with board rules, with the
board itself.
   (h) (1) Complaints shall be filed within one year of the alleged
unlawful discrimination or the refusal to act in accordance with this
section, except that this period may be extended for not to exceed
90 days following the expiration of that year, if a person allegedly
aggrieved by unlawful discrimination first obtained knowledge of the
facts of the alleged unlawful discrimination after the expiration of
one year from the date of its occurrence.  Complaints of
discrimination in adverse actions or rejections on probation shall be
filed in accordance with Sections 19175 and 19575.
   (2) Notwithstanding paragraph (1), this paragraph shall apply only
to state employees in State Bargaining Unit 8.  Complaints shall be
filed within one year of the alleged unlawful discrimination or the
refusal to act in accordance with this section, except that this
period may be extended for not to exceed 90 days following the
expiration of that year, if a person allegedly aggrieved by unlawful
discrimination first obtained knowledge of the facts of the alleged
unlawful discrimination after the expiration of one year from the
date of its occurrence.  Complaints of discrimination in disciplinary
actions defined in Section 19576.5 shall be filed in accordance with
that section. Complaints of discrimination in all other disciplinary
actions shall be filed in accordance with Section 19575.  Complaints
of discrimination in rejections on probation shall be filed in
accordance with Section 19175.3.
   (i) (1) When an employee of the appointing authority refuses, or
threatens to refuse, to cooperate in the investigation of a complaint
of discrimination, the appointing authority may seek assistance from
the board. The board may provide for direct investigation or hearing
of the complaint, the use of subpoenas, or any other action which
will effect the purposes of this section.
   (2) This subdivision shall not apply to complaints of
discrimination filed in accordance with Section 19576.2.
  SEC. 34.  Section 19702.7 of the Government Code is repealed.
  SEC. 35.  Section 19786 of the Government Code is amended to read:

   19786.  (a) When a civil service employee has been reinstated
after military service in accordance with Section 19780, and any
question arises relative to his or her ability or inability for any
reason arising out of the military service to perform the duties of
the position to which he or she has been reinstated, the board shall,
upon the request of the appointing power or of the employee, hear
the matter and may on its own motion or at the request of either
party take any and all necessary testimony of every nature necessary
to a decision on the question.
   (b) If the board finds that the employee is not able for any
reason arising out of the military service to carry out the usual
duties of the position he or she then holds, it shall order the
employee placed in a position in which the board finds he or she is
capable of performing the duties in the same class or a comparable
class in the same or any other state department, bureau, board,
commission, or office under this part and the rules of the board
covering transfer of an employee from a position under the
jurisdiction of one appointing power to a position under the
jurisdiction of another appointing power, without the consent of the
appointing powers, where a vacancy may be made available to him or
her under this part and the rules of the board, but in no event shall
the transfer constitute a promotion within the meaning of this part
and the rules of the board.
   (c) (1) If a layoff is made necessary to place a civil service
employee in a position in the same class or a comparable class in
accordance with this section, the layoff shall be made under Section
19997.3, provided that no civil service employee who was employed
prior to September 16, 1940, shall be laid off as a result of the
placing of an employee in the same class or a comparable class under
this section.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 5, 6, or 8.  If a layoff is
made necessary to place a civil service employee in a position in the
same class or a comparable class in accordance with this section,
the layoff shall be made under Section 19997.3.
   (d) The board may order the civil service employee reinstated to
the department, bureau, board, commission, or office from which he or
she was transferred either upon request of the employee or the
appointing power from which transferred.  The reinstatement may be
made after a hearing as provided in this section if the board finds
that the employee is at the time of the hearing able to perform the
duties of the position.
  SEC. 36.  Section 19786.2 of the Government Code is repealed.
  SEC. 37.  Section 19798 of the Government Code is amended to read:

   19798.  In establishing order and subdivisions of layoff and
reemployment, the board, when it finds past discriminatory hiring
practices, shall by rule, adopt a process that provides that the
composition of the affected work force will be the same after the
completion of a layoff, as it was before the layoff procedure was
implemented.  This section does not apply to state employees in State
Bargaining Unit 5, 6, or 8.
  SEC. 38.  Section 19798.2 of the Government Code is repealed.
  SEC. 39.  Section 19815.41 of the Government Code is amended to
read:
   19815.41.  (a) Notwithstanding subdivision (e) of Section 19815.4,
this section shall apply to state employees in State Bargaining Unit
5, 6, or 8.
   (b) The director shall hold nonmerit statutory appeal hearings,
subpoena witnesses, administer oaths, and conduct investigations in
accordance with Department of Personnel Administration Rule 599.859
(b)(2).
   (c) The director may, at his or her discretion, hold hearings,
subpoena witnesses, administer oaths, or conduct investigations or
appeals concerning other matters relating to the department's
jurisdiction.
   (d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 40.  Section 19815.42 of the Government Code is repealed.
  SEC. 41.  Section 19816.2 of the Government Code is amended to
read:
   19816.2.  Notwithstanding any other provision of this part,
regulations and other provisions pertaining to the layoff or demotion
in lieu of layoff of civil service employees that are established or
agreed to by the department shall be subject to review by the State
Personnel Board for consistency with merit employment principles as
provided for by Article VII of the California Constitution.  This
section does not apply to state employees in State Bargaining Unit 5,
6, or 8.
  SEC. 42.  Section 19816.22 of the Government Code is repealed.
  SEC. 43.  Section 19817 of the Government Code is amended to read:

   19817.  This article applies only with respect to regulations that
apply to state employees in State Bargaining Unit 5, 6, or 8.
  SEC. 44.  Section 19817.8 of the Government Code is repealed.
  SEC. 45.  Section 19818.7 of the Government Code is amended to
read:
   19818.7.  (a) Notwithstanding Section 19818.6, this section shall
apply only to state employees in State Bargaining Unit 6.
   (b) The department shall administer the Personnel Classification
Plan of the State of California including the allocation of every
position to the appropriate class in the classification plan.  The
allocation of a position to a class shall derive from and be
determined by the ascertainment of the duties and responsibilities of
the position and shall be based on the principle that all positions
that meet the definition of a class pursuant to Section 18523.1 shall
be included in the same class.
   (c) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
the memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   (d) A broadband project may not change the terms and conditions of
employment covered by a memorandum of understanding entered into
pursuant to the Ralph C. Dills Act (Chapter 10.3 (commencing with
Section 3512) of Division 4 of Title 1), unless there is a written
agreement with respect to the project between the department and the
recognized employee organization representing the affected employees.

  SEC. 46.  Section 19818.11 of the Government Code is amended to
read:
   19818.11.  (a) This section shall apply only to state employees in
State Bargaining Unit 6.
   The department may, directly or through agreement or contract with
one or more agencies, conduct demonstration classification,
compensation, and related projects.  "Demonstration project", for the
purposes of this section, means a project that uses alternative
classification, compensation, and other personnel management policies
and procedures to determine if a change would result in cost
savings, improved efficiency, or both cost savings and improved
efficiency in the existing personnel management system.
   (b) Nothing in this section shall infringe upon or conflict with
the merit principles as embodied in Article VII of the California
Constitution.
   (c) The establishment of a demonstration project shall not be
limited by the lack of specific authority in this division or by the
existence of any statute or regulation that is inconsistent with
actions to be taken in the demonstration project.
   (d) Prior to implementation of a demonstration project, the
department shall adopt regulations specifying the impact of the
project on employee status, compensation, benefits, and rights with
regard to transfer, layoff, promotion, and demotion.  These
regulations are not subject to the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340), Chapter 4 (commencing
with Section 11370), Chapter 4.5 (commencing with Section 11400), and
Chapter 5 (commencing with Section 11500) of Part 1 of Division 3),
and shall automatically expire after five years from the date of
adoption or at the end of the demonstration project, whichever is
earlier. Nothing in this section shall affect the rights of employees
included within demonstration projects, except those rights directly
pertaining to the subject matter of the demonstration project.
   (e) The department shall notify each house of the Legislature when
a demonstration project is undertaken.  The department shall also
evaluate each project at its conclusion and notwithstanding Section
7550.5, shall prepare and submit a summary of the evaluation to each
house of the Legislature that includes a discussion of the following:

   (1) The purpose of the demonstration project that specifically
states the goals or objectives of the project.
   (2) The cost projections and methods by which savings, if any, may
be calculated.
   (3) A definitive mechanism by which the value and success, if any,
of the demonstration project may be quantified as feasible.  This
mechanism shall include specific numerical objectives that must be
met or exceeded if a demonstration project is to be judged
successful.
   (f) A demonstration project may not change the terms and
conditions of employment covered by a memorandum of understanding
entered into pursuant to the Ralph C. Dills Act (Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1), unless
there is a written agreement with respect to the project between the
department and the recognized employee organization representing the
affected employees.
   (g) Any demonstration project implemented under this section shall
not include the adoption or waiver of regulations or statutes that
are administered or enforced by the State Personnel Board without the
express approval of the State Personnel Board.
  SEC. 47.  Section 19818.15 of the Government Code is repealed.
  SEC. 48.  Section 19826.1 of the Government Code is amended to
read:
              19826.1.  Notwithstanding Section 19826, effective
January 1, 1999, this section shall only apply to state employees in
State Bargaining Unit 6.
   (a) The department shall establish and adjust salary ranges or
rates for each class of position in the state civil service subject
to any merit limits contained in Article VII of the California
Constitution.  The salary range or rate shall be based on the
principle that like salaries shall be paid for comparable duties and
responsibilities.  In establishing or changing these ranges or rates,
consideration shall be given to the prevailing rates for comparable
service in other public employment and in private business.  The
department shall make no adjustments that require expenditures in
excess of existing appropriations that may be used for salary
increase purposes.  The department may make a change in salary range
or rate retroactive to the date of application for the change.
   (b) Notwithstanding any other provision of law, the department
shall not establish, adjust, or recommend a salary range or rate for
any employees in an appropriate unit where an employee organization
has been chosen as the exclusive representative pursuant to Section
3520.5.
   (c) Notwithstanding Section 7550.5, on or before January 10 of
each year, the department shall prepare and submit to the parties
meeting and conferring pursuant to Section 3517 and to the
Legislature, a report containing the department's findings relating
to the salaries of employees in comparable occupations in private
industry and other governmental agencies.
   (d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 49.  Section 19828.2 of the Government Code is repealed.
  SEC. 50.  Section 19829 of the Government Code is amended to read:

   19829.  (a) (1) Salary ranges shall consist of minimum and maximum
salary limits.  The department shall provide for intermediate steps
within these limits to govern the extent of the salary adjustment
that an employee may receive at any one time; provided, that in
classes and positions with unusual conditions or hours of work or
where necessary to meet the provisions of state law recognizing
differential statutory qualifications within a profession or
prevailing rates and practices for comparable services in other
public employment and in private business, the department may
establish more than one salary range or rate or method of
compensation within a class.
   (2) Effective October 1, 1995, notwithstanding paragraph (1), this
paragraph shall apply only to state employees in State Bargaining
Unit 5. Salary ranges shall consist of minimum and maximum salary
limits.  Except where otherwise provided by law, the appointing power
or designee may authorize payment at any salary rate within these
limits to govern the extent of a salary adjustment that an employee
may receive for situations including, but not limited to, recruitment
and retention, extraordinary qualifications, and successful job
performance or promotion.  Only those employees who are performing
successfully as determined by the appointing power or designee shall
receive periodic salary increases until the maximum of the salary
range is reached to recognize continuous successful performance or
value to the organization.  Adjustments within the salary range
authorized in this paragraph may be either temporary or permanent.
The department may establish more than one salary range or rate or
method of compensation within a class.
   (3) Effective January 1, 1999, notwithstanding paragraph (1), this
paragraph shall apply only to state employees in State Bargaining
Unit 8. Salary ranges shall consist of minimum and maximum salary
limits.  Except where otherwise provided by law, the appointing power
or designee, consistent with the regulations of the department,
shall determine the employee's salary rate upon appointment and may
authorize subsequent increases in these rates based on considerations
including, but not limited to, recruitment and retention,
extraordinary qualifications, and successful job performance or
promotion.  Only those employees who are performing successfully as
determined by the appointing power or designee shall receive periodic
performance salary adjustments until the maximum of the salary range
is reached to recognize continuous successful performance or value
to the organization.  Adjustments within the salary range authorized
in this section may be either temporary or permanent.  The department
may establish more than one salary range or rate or method of
compensation within a class.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 51.  Section 19829.2 of the Government Code is repealed.
  SEC. 52.  Section 19832 of the Government Code is amended to read:

   19832.  (a) (1) After completion of the first year in a position,
each employee shall receive a merit salary adjustment equivalent to
one of the intermediate steps during each year when he or she meets
the standards of efficiency as the department by rule shall
prescribe.
   (2) Effective October 1, 1995, notwithstanding paragraph (1), this
paragraph shall apply only to state employees in State Bargaining
Unit 5.  Employees whose salary is not at the maximum of the salary
range shall receive a salary review and be considered for a salary
adjustment at least annually.  Only those employees who are
performing successfully, as determined by the appointing power, shall
receive salary increases until the maximum of the salary range is
reached to recognize continuous successful performance.  The employee'
s salary rate may not exceed the maximum of the salary range or fall
below the minimum of the salary range except where otherwise provided
by law or department rules.
   (3) Effective January 1, 1999, notwithstanding paragraph (1), this
paragraph shall apply only to state employees in State Bargaining
Unit 8. Employees whose salary is not at the maximum of the salary
range shall be considered for a performance salary adjustment at
least annually.  Only those employees who are performing successfully
as determined by the appointing power shall receive performance
salary adjustments until the maximum of the salary range is reached
to recognize continuous successful performance.  The employee's
salary rate may not exceed the maximum of the salary range or fall
below the minimum of the salary range except where otherwise provided
by law or department rules.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 53.  Section 19832.2 of the Government Code is repealed.
  SEC. 54.  Section 19834 of the Government Code is amended to read:

   19834.  (a) Automatic salary adjustments shall be made for
employees in the state civil service in accordance with this chapter
and department rule adopted pursuant hereto, notwithstanding the
power now or hereafter conferred on any officer to fix or approve the
fixing of salaries, unless there is not sufficient money available
for the purpose in the appropriation from which the salary shall be
paid and the director shall so certify.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   (c) Effective October 1, 1995, this section shall not apply to
state employees in State Bargaining Unit 5.
   (d) Effective January 1, 1999, this section shall not apply to
state employees in State Bargaining Unit 8.
  SEC. 55.  Section 19834.2 of the Government Code is repealed.
  SEC. 56.  Section 19835 of the Government Code is amended to read:

   19835.  (a) The right of an employee to automatic salary
adjustments is cumulative for a period not to exceed two years and he
or she shall not, in the event of an insufficiency of appropriation,
lose his or her right to these adjustments for the intermediate
steps to which he or she may be entitled for this period.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   (c) Effective October 1, 1995, this section shall not apply to
state employees in State Bargaining Unit 5.
   (d) Effective January 1, 1999, this section shall not apply to
state employees in State Bargaining Unit 8.
  SEC. 57.  Section 19835.2 of the Government Code is repealed.
  SEC. 58.  Section 19836.1 of the Government Code is amended to
read:
   19836.1.  Effective January 1, 1999, notwithstanding Section
19836, this section shall apply only to state employees in State
Bargaining Unit 8.
   (a) The appointing power or designee with the approval of the
department may authorize payment at any step above the minimum salary
limit to classes or positions in order to correct salary inequities.

   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if such provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 59.  Section 19841 of the Government Code is amended to read:

   19841.  (a) Notwithstanding Section 11030, whenever a state
officer or employee is required by the appointing power because of a
change in assignment, promotion, or other reason related to his or
her duties to change his or her place of residence, the officer,
agent, or employee shall receive his or her actual and necessary
moving, traveling, lodging, and meal expenses incurred by him or her
both before and after and by reason of the change of residence.  The
maximum allowances for these expenses shall be as follows:  the costs
of packing, transporting, and unpacking 11,000 pounds of household
effects, traveling, lodging, and meal expenses for 60 days while
locating a permanent residence, storage of household effects for 60
days, and additional miscellaneous allowances not in excess of two
hundred dollars ($200).  The maximum allowances may be exceeded where
the director determines that the change of residence will result in
unusual and unavoidable hardship for the officer or employee, and in
those cases the director shall determine the maximum allowances to be
received by the officer or employee.
   (b) If a change of residence reasonably requires the sale of a
residence or the settlement of an unexpired lease, the officer or
employee may be reimbursed for any of the following expenses:
   (1) The settlement of the unexpired lease to a maximum of one
year. Upon the date of surrender of the premises by the employee who
is the lessee, the rights and obligations of the parties to the lease
shall be as determined by Section 1951.2 of the Civil Code.
   The state shall be absolved of responsibility for an unexpired
lease if the department determines the employee knew or reasonably
should have known that a transfer involving a physical move was
imminent before entering into the lease agreement.
   (2) In the event of residence sale, reimbursement for brokerage
and other related selling fees or charges, as determined by
regulations of the department, customarily charged for like services
in the locality where the residence is located.
   (c) This subdivision shall apply to state employees in State
Bargaining Unit 5, 6, or 8.  If the change of residence is caused by
a layoff, the application of this section shall be at the discretion
of the department based upon the recommendation of the appointing
power.
   (d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 60.  Section 19841.2 of the Government Code is repealed.
  SEC. 61.  Section 19853.1 of the Government Code is amended to
read:
   19853.1.  (a) Notwithstanding Section 19853, this section shall
apply to state employees in State Bargaining Unit 5.
   (b) Except as provided in subdivision (c), all employees shall be
entitled to the following holidays:  January 1, the third Monday in
January, the third Monday in February, the last Monday in May, July
4, the first Monday in September, November 11, the day after
Thanksgiving, December 25, and every day appointed by the Governor of
this state for a public fast, Thanksgiving, or holiday.
   If a day listed in this subdivision falls on a Sunday, the
following Monday shall be deemed to be the holiday in lieu of the day
observed.  If November 11 falls upon a Saturday, the preceding
Friday shall be deemed to be the holiday in lieu of the day observed.
  Any employee who may be required to work on any of the holidays
included in this section and who does work on any of these holidays
shall be entitled to be paid compensation or given compensating time
off for that work in accordance with his or her classification's
assigned workweek group.
   (c) If the provisions of subdivision (b) are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   (d) Any employee who either is excluded from the definition of
state employee in subdivision (c) of Section 3513, or is a nonelected
officer or employee of the executive branch of government who is not
a member of the civil service, is entitled to the following
holidays, with pay, in addition to any official state holiday
appointed by the Governor:
   (1) January 1, the third Monday in January, the third Monday in
February, the last Monday in May, July 4, the first Monday in
September, November 11, Thanksgiving Day, the day after Thanksgiving,
December 25.
   (2) When November 11 falls on a Saturday, employees shall be
entitled to the preceding Friday as a holiday with pay.
   (3) When a holiday, other than a personal holiday, falls on a
Saturday, an employee shall, regardless of whether he or she works on
the holiday, accrue only an additional eight hours of personal
holiday credit per fiscal year for the holiday.  The holiday credit
shall be accrued on the actual date of the holiday and shall be used
within the same fiscal year.
   (4) When a holiday other than a personal holiday falls on Sunday,
employees shall be entitled to the following Monday as a holiday with
pay.
   (5) Employees who are required to work on a holiday shall be
entitled to pay or compensating time off for this work in accordance
with their classification's assigned workweek group.
   (6) Persons employed on less than a full-time basis shall receive
holidays in accordance with the Department of Personnel
Administration rules.
   (e) Any employee, as defined in subdivision (c) of Section 3513,
may elect to use eight hours of vacation, annual leave, or
compensating time off consistent with departmental operational needs
and collective bargaining agreements for March 31, known as "Cesar
Chavez Day."
   (f) Any employee, as defined in subdivision (c) of Section 3513,
may elect to use eight hours of vacation, annual leave, or
compensating time off consistent with departmental operational needs
and collective bargaining agreements for the fourth Friday in
September, known as "Native American Day."
   (g) This section shall become effective only when the Department
of Personnel Administration notifies the Legislature that the
language contained in this section has been agreed to by all the
parties, and the necessary statutes are amended to reflect this
change for employees excluded from the Ralph C. Dills Act (Chapter
10.3 (commencing with Section 3512), Division 4, Title 1).
  SEC. 62.  Section 19853.3 of the Government Code is repealed.
  SEC. 63.  Section 19854 of the Government Code is amended to read:

   19854.  (a) Every employee, upon completion of six months of his
or her initial probationary period in state service, shall be
entitled to one personal holiday per fiscal year.  The personal
holiday shall be credited to each full-time employee on the first day
of July.  No employee shall lose a personal holiday credit because
of the change from calendar to fiscal year crediting.  The department
head or designee may require the employee to provide five working
days' advance notice before a personal holiday is taken, and may deny
use subject to operational needs.  The department may provide by
rule for the granting of this holiday for employees.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
   (c) This section does not apply to state employees in State
Bargaining Unit 5.
   (d) Subdivision (c) shall become effective only when the
Department of Personnel Administration notifies the Legislature that
the language contained in that subdivision has been agreed to by all
the parties, and the necessary statutes are amended to reflect this
change for employees excluded from the Ralph C. Dills Act (Chapter
10.3 (commencing with Section 3512), Division 4, Title 1).
  SEC. 64.  Section 19854.2 of the Government Code is repealed.
  SEC. 65.  Section 19994 of the Government Code is amended to read:

   19994.  (a) (1) When the state takes over and there is transferred
to it a function from any other public agency, the department may
determine the extent, if any, to which the employees employed by the
other public agency on the date of transfer are entitled to have
credited to them in the state civil service, seniority credits,
accumulated sick leave, and accumulated vacation because of service
with the former agency.  Granting of seniority credit under this
section is subject to review by the State Personnel Board pursuant to
Section 19816.2.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 5, 6, or 8.  When the state
takes over and there is transferred to it a function from any other
public agency, the department may determine the extent, if any, to
which the employees employed by the other public agency on the date
of transfer are entitled to have credited to them in the state civil
service, seniority credits, accumulated sick leave, and accumulated
vacation because of service with the former agency.
   (b) The department shall limit that determination to the time any
transferred employees were employed in the specific function or a
function substantially similar while in the former agency and the
seniority credits and accumulated sick leave and accumulated vacation
shall not exceed that to which each employee would be entitled if he
or she had been continuously employed by the State of California.
This section is applicable to any function heretofore transferred to
the state, whether by state action or otherwise, as well as to any
future transfers of a function to the state, whether by state action
or otherwise.
  SEC. 66.  Section 19994.1 of the Government Code is amended to
read:
   19994.1.  (a) An appointing power may transfer any employee under
his or her jurisdiction:  (1) to another position in the same class;
or (2) from one location to another whether in the same position, or
in a different position as specified above in (1) or in Section
19050.5.
   (b) (1) When a transfer under this section or Section 19050.5
reasonably requires an employee to change his or her place of
residence, the appointing power shall give the employee, unless the
employee waives this right, a written notice of transfer 60 days in
advance of the effective date of the transfer.  Unless the employee
waives this right, the appointing power shall provide to the employee
60 days prior to the effective date of the transfer a written notice
setting forth in clear and concise language the reasons why the
employee is being transferred.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 5, 6, or 8.  When a transfer
under this section or Section 19050.5 reasonably requires an
employee to change his or her place of residence, the appointing
power shall give the employee, unless the employee waives this right,
a written notice of transfer 60 days in advance of the effective
date of the transfer unless the transfer is in lieu of layoff, in
which case the notice shall be 30 days in advance of the effective
date of the transfer.  Unless the employee waives this right, the
written notice shall set forth in clear and concise language the
reasons why the employee is being transferred.
   (c) If this section is in conflict with a memorandum of
understanding reached pursuant to Section 3517.5, the memorandum of
understanding shall be controlling without further legislative
action, except that if the memorandum of understanding requires the
expenditure of funds, it shall not become effective unless approved
by the Legislature in the annual Budget Act.
  SEC. 67.  Section 19994.2 of the Government Code is amended to
read:
   19994.2.  (a) (1) When there are two or more employees in a class
and an involuntary transfer is required to a position in the same
class, or an appropriate class as designated by the State Personnel
Board, in a location that reasonably requires an employee to change
his or her place of residence, the department may determine the
methods by which employees in the class or classes involved are to be
selected for transfer.  These methods may include seniority and
other considerations.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 5, 6, or 8.  When there are
two or more employees in a class and an involuntary transfer is
required to a position in the same class, or an appropriate class as
designated by the State Personnel Board, in a location that
reasonably requires an employee to change his or her place of
residence, the department may determine the methods by which
employees in the class or classes involved are to be selected for
transfer.  These methods may include seniority and other
considerations, including special skills.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 68.  Section 19994.6 of the Government Code is repealed.
  SEC. 69.  Section 19994.7 of the Government Code is repealed.
  SEC. 70.  Section 19994.8 of the Government Code is repealed.
  SEC. 71.  Section 19995.5 is added to the Government Code, to read:

   19995.5.  (a) There is hereby created in the State Treasury, the
State Employee Scholarship Fund to which funds shall be allocated
from the amount negotiated in memoranda of understanding between the
state and recognized employee organizations, as defined in Section
3513, and appropriated by the Legislature for the 2000-01 fiscal
year.
   (b) The fund shall be used to establish a program for career
advancement to assist eligible state employees to participate in
educational programs that will enhance the personal growth and career
development of employees in state government.
   (c) The fund shall be administered by the Department of Personnel
Administration.  The amounts to be allocated and expended from funds
available for compensation shall be determined by the department.
   (d) Notwithstanding Section 13340, moneys in the fund shall be
available for expenditure without regard to fiscal years through June
30, 2001.  As of June 30, 2001, the fund shall cease to exist unless
the existence of the fund is extended by statute and that statute is
enacted prior to June 30, 2001.
  SEC. 72.  Section 19997 of the Government Code is amended to read:

   19997.  (a) Whenever it is necessary because of lack of work or
funds, or whenever it is advisable in the interests of economy, to
reduce the staff of any state agency, the appointing power may lay
off employees pursuant to this article and department rule.  All
layoff provisions and procedures
               established or agreed to under this article shall be
subject to State Personnel Board review pursuant to Section 19816.2.

   (b) Notwithstanding subdivision (a), this subdivision shall apply
to state employees in State Bargaining Unit 5, 6, or 8.  Whenever it
is necessary because of lack of work or funds, or whenever it is
advisable in the interests of economy, to reduce the staff of any
state agency, the appointing power may lay off employees pursuant to
this article and department rule.
  SEC. 73.  Section 19997.3 of the Government Code is amended to
read:
   19997.3.  (a) (1) Layoff shall be made in accordance with the
relative seniority of the employees in the class of layoff.  In
determining seniority scores, one point shall be allowed for each
complete month of full-time state service regardless of when the
service occurred.  Department rules shall establish all of the
following:
   (A) The extent to which seniority credits may be granted for less
than full-time service.
   (B) The seniority credit to be granted for service in a class that
has been abolished, combined, divided, or otherwise altered under
the authority of Section 18802.
   (C) The basis for determining the sequence of layoff whenever the
class and subdivision of layoff includes employees whose service is
less than full time.
   (D) Any other matters as are necessary or advisable to the
operation of this chapter.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 5, 6, or 8.  Layoff shall be
made in accordance with the relative seniority of the employees in
the class of layoff.  In determining seniority scores, one point
shall be allowed for each complete month of full-time state service
regardless of when the service occurred.  Department rules shall
establish all of the following:
   (A) The extent to which seniority credits may be granted for less
than full-time service.
   (B) The basis for determining the sequence of layoff whenever the
class and subdivision of layoff includes employees whose service is
less than full time.
   (C) Any other matters as are necessary or advisable to the
operation of this chapter.
   (3) For state employees in State Bargaining Unit 8, less than
full-time service shall be prorated.
   (b) For professional, scientific, administrative, management, and
executive classes, the department shall prescribe standards and
methods by rule whereby employee efficiency shall be combined with
seniority in determining the order of layoffs and the order of names
on reemployment lists.  These standards and methods may vary for
different classes, and shall take into consideration the needs of
state service and practice in private industry and other public
employment.
   (c) For state employees in State Bargaining Unit 8, prior to
laying off, transferring, or demoting permanent or probationary
employees, employment for other employees who did not formerly have
permanent status shall be terminated in the following sequence:
student assistants, retired annuitants, temporary intermittent,
limited term, and permanent intermittent appointments.  No
distinction shall be made between a probationary and permanent
employee or between full-time and part-time employees when making
layoffs.  For layoff purposes employees on leaves of absences shall
be treated the same as other employees.
   (d) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding incurs either present or future costs,
or requires the expenditure of funds, the provisions shall not become
effective unless approved by the Legislature in the annual Budget
Act.
  SEC. 74.  Section 19997.4 of the Government Code is amended to
read:
   19997.4.  (a) For the purposes of determining seniority pursuant
to paragraph (1) of subdivision (a) of Section 19997.3, the term
"state service" shall include all service that is exempt from state
civil service.
   (b) Notwithstanding subdivision (a), this subdivision shall apply
only to state employees in State Bargaining Unit 5.  For the purposes
of determining seniority pursuant to paragraph (2) of subdivision
(a) of Section 19997.3, the term "state service" shall include
service that is exempted from state civil service by subdivisions
(e), (f), (g), (i), and (m) of Section 4 of Article VII of the
California Constitution.
   (c) Notwithstanding subdivision (a), this subdivision shall apply
to state employees in State Bargaining Unit 6 or 8.  For the purposes
of determining seniority pursuant to paragraph (2) of subdivision
(a) of Section 19997.3, the term "state service" shall include
service that is exempted from the state civil service by any of the
following:
   (1) Subdivision (e), (f), (g), (i), or (m) of Section 4 of Article
VII of the California Constitution.
   (2) Subdivision (a) of Section 4 of Article VII of the California
Constitution if an employee provides to the appointing power a copy
of his or her official employment history record by July 1, 1999, or
within six months of appointment to the state civil service.
  SEC. 75.  Section 19997.5 of the Government Code is amended to
read:
   19997.5.  (a) Separations that are necessary by reason of
reinstatement of an employee or employees after recognized military
service as provided for in Section 19780 shall be made by layoff.  In
making these separations, the regular method of determining the
order of layoff shall be used unless this would result in the layoff
of an employee who has been reinstated in the class and subdivision
of layoff under Section 19780, and in the retention of an employee
who was appointed in the class and subdivision of layoff during the
time that a reinstated employee was on military leave. Under these
circumstances, seniority shall not be counted as provided in Section
19997.3.  Instead, service in the subdivision of layoff that
qualifies under Section 19997.3 for credit is the only state service
that shall be counted.
   Whenever such a layoff results in the demotion to a lower class of
an employee who has been reinstated after recognized military
service as provided in Section 19780, the resulting layoff, if any,
in the lower class shall be made as though that reinstated employee
had been in that lower class at the time he or she went on military
leave.
   Any layoff occurring within one year after reinstatement of an
employee after recognized military service shall be presumed to have
been necessary by reason of reinstatement of an employee or employees
under Section 19780 unless the department determines that the reason
for layoff is clearly not related to the reinstatement.
   (b) Notwithstanding subdivision (a), this subdivision shall apply
to state employees in State Bargaining Unit 5, 6, or 8.  Separations
that are necessary by reason of reinstatement of an employee or
employees after recognized military service as provided for in
Section 19780 shall be made by layoff.  In making these separations,
the regular method of determining the order of layoff shall be used.

  SEC. 76.  Section 19997.6 of the Government Code is amended to
read:
   19997.6.  (a) A veteran, except a veteran who was reinstated from
military leave, shall in the event of layoff receive seniority credit
for recognized military service if the veteran entered the state
service after discharge, the end of the national emergency, or the
end of the state military emergency.
   (b) Seniority credit for recognized military service shall be
computed as if it were service in the class to which the employee was
first given permanent civil service or exempt appointment after his
or her entry into the state service following recognized military
service.
   (c) Seniority credit for recognized military service shall not
exceed one year's credit if the veteran had no state service prior to
entering the military service.
   (d) This section shall become operative on July 1, 1993.
   (e) Notwithstanding subdivisions (a), (c), and (d), this
subdivision shall apply to state employees in State Bargaining Unit
5, 6  or 8.  A veteran, except a veteran who was reinstated from
military leave, shall in the event of layoff receive a maximum of one
year's seniority credit for recognized military service if the
veteran entered the state service after discharge, the end of the
national emergency, or the end of the state military emergency.  For
purposes of this subdivision, "recognized military service" means
service in a military campaign or expedition for which a medal was
authorized by the government of the United States in accordance with
Section 300.1 of Title 12 of the California Code of Regulations.
  SEC. 77.  Section 19997.7 of the Government Code is amended to
read:
   19997.7.  (a) Employees in the class under consideration, up to
the number of positions to be abolished or discontinued, shall be
laid off in the order as determined under this part.  As between two
or more of these employees who have the same score, veterans shall
have preference in retention.  Other ties shall be resolved according
to department rule that shall take into consideration other matters
of record before names are drawn by lot.
   (b) Notwithstanding subdivision (a), this subdivision shall apply
to state employees in State Bargaining Unit 5, 6, or 8.  Employees in
the class under consideration, up to the number of positions to be
abolished or discontinued, shall be laid off in the order as
determined under this part. As between two or more employees who have
the same score, veterans shall have preference in retention.  Other
ties shall be determined by lot.
  SEC. 78.  Section 19997.8 of the Government Code is amended to
read:
   19997.8.  (a) (1) In lieu of being laid off an employee may elect
demotion to:  (A) any class with substantially the same or a lower
maximum salary in which he or she had served under permanent or
probationary status, or (B) a class in the same line of work as the
class of layoff, but of lesser responsibility, if such a class is
designated by the department.  Whenever a demotion requires a layoff
in the elected class, the seniority score for the demoted employee
shall be recomputed in that class.  The appointing power shall inform
the employee in the notice of layoff of the classes to which he or
she has the right to demote.  To be considered for demotion in lieu
of layoff an employee must notify his or her appointing power in
writing of his or her election not later than five calendar days
after receiving notice of layoff.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 5, 6, or 8.  In lieu of
being laid off an employee may elect demotion to:  (A) any class with
substantially the same or a lower maximum salary in which he or she
had served under permanent or probationary status, or (B) a class in
the same class series as the class of layoff, but of lesser
responsibility, or (C) a class in a related line of work as the class
of layoff, but of lesser responsibility, if such a class is
designated by the department.  Whenever a demotion requires a layoff
in the elected class, the seniority score for the demoted employee
shall be recomputed in that class if necessary.  The appointing power
shall inform the employee in the notice of layoff of the classes to
which he or she has the right to demote.  To be considered for
demotion in lieu of layoff an employee must notify his or her
appointing power in writing of his or her election not later than
five calendar days after receiving notice of layoff.
   (b) Demotions in lieu of layoff, and layoffs resulting therefrom,
shall be governed by this article and shall be made within the
subdivisions approved by the department for this purpose.  These
subdivisions need not be the same as those used to determine the area
of layoff under Section 19997.2.
   (c) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 79.  Section 19997.11 of the Government Code is amended to
read:
   19997.11.  (a) (1) The names of employees to be laid off or
demoted shall be placed upon the reemployment list for the
subdivision, if such a subdivision was designated, upon the
departmental reemployment list and upon the general reemployment
list, for the class from which the employees were laid off or
demoted.  The department may also place these names upon the general
reemployment list for any other appropriate classes as the department
determines.
   (2) Notwithstanding paragraph (1), this paragraph shall apply only
to state employees in State Bargaining Unit 5.  The names of
employees to be laid off, demoted in lieu of layoff, or transferred
in lieu of layoff shall be placed upon the reemployment list for the
subdivision, if such a subdivision was designated, upon the
departmental reemployment list and upon the general reemployment
list, for the class from which the employees were laid off, demoted
in lieu of layoff, or transferred in lieu of layoff.  The department
may also place these names upon the general reemployment list for any
other appropriate classes as the department determines.
   (3) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 6 or 8.  The names of
employees to be laid off, demoted in lieu of layoff, or transferred
in lieu of layoff shall be placed upon the reemployment list for the
subdivision, if such a subdivision was designated and upon the
departmental reemployment list, for the class from which the
employees were laid off, demoted in lieu of layoff, or transferred in
lieu of layoff.  The department shall also place these names upon
the general reemployment list only for the entry level class within
the employee's primary demotional pattern.  This general reemployment
list shall be a rule of one name.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 80.  Section 19997.13 of the Government Code is amended to
read:
   19997.13.  (a) (1) An employee compensated on a monthly basis
shall be notified that he or she is to be laid off 30 days prior to
the effective date of layoff and not more than 60 days after the date
of the seniority computation.  The notice of layoff shall be in
writing and shall contain the reason or reasons for the layoff.  An
employee to be laid off may elect to accept this layoff prior to the
effective date thereof.
   (2) Notwithstanding paragraph (1), this paragraph shall apply to
state employees in State Bargaining Unit 5, 6, or 8.  An employee
compensated on a monthly basis shall be notified that he or she is to
be laid off 30 days prior to the effective date of layoff.  The
notice of layoff shall be in writing and shall contain the reason or
reasons for the layoff.  An employee to be laid off may elect to
accept this layoff prior to the effective date thereof.
   (b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
  SEC. 81.  Section 19997.40 of the Government Code is repealed.
  SEC. 82.  Section 19997.43 of the Government Code is repealed.
  SEC. 83.  Section 19997.44 of the Government Code is repealed.
  SEC. 84.  Section 19997.45 of the Government Code is repealed.
  SEC. 85.  Section 19997.46 of the Government Code is repealed.
  SEC. 86.  Section 19997.47 of the Government Code is repealed.
  SEC. 87.  Section 19997.48 of the Government Code is repealed.
  SEC. 88.  Section 19997.51 of the Government Code is repealed.
  SEC. 89.  Section 19997.53 of the Government Code is repealed.
  SEC. 90.  Section 20405.2 is added to the Government Code, to read:

   20405.2.  A member who made the election to remain under the
miscellaneous or industrial retirement benefit, as provided in
Section 20405.1, may elect to be subject to the state safety formula
within 90 days of notification by the board.  The election, which
shall be provided by the board on and after January 1, 2000, shall be
filed with the board.  Past service that would have been credited as
a safety member, but for the member's election to remain under the
miscellaneous or industrial formula, shall be credited under the
safety formula.  This section shall apply to state employees in state
bargaining units that have agreed to this provision in a memorandum
of understanding, or authorized by the Director of the Department of
Personnel Administration for classifications of state employees that
are excluded from the definition of state employee by paragraph (c)
of Section 3513 of the Government Code.
  SEC. 91.  Section 22754 of the Government Code is amended to read:

   22754.  As used in this part the following definitions, unless the
context otherwise requires, shall govern the interpretation of
terms:
   (a) "Board" means the Board of Administration of the Public
Employees' Retirement System.
   (b) "Employee" means:
   (1) Any officer or employee of the State of California or of any
agency, department, authority, or instrumentality of the state
including the University of California, or any officer or employee
who is a local or school member of the Public Employees' Retirement
System employed by a contracting agency that has elected to be or
otherwise has become subject to this part, or who is a member or
retirant of the State Teachers' Retirement System employed by an
employer who has elected to become subject to this part, or who is an
employee or annuitant of a special district or county subject to the
County Employees Retirement Law of 1937 (Chapter 3 (commencing with
Section 31450) of Part 3 of Division 4 of Title 3) that has elected
to become subject to this part, or who is an employee or annuitant of
a special district, as defined in subdivision (i), that has elected
to become subject to this part, except persons employed on an
intermittent, irregular or less than half-time basis, or employees
similarly situated, or employees in respect to whom contributions by
the state for any type of plan or program offering prepaid hospital
and medical care are otherwise authorized by law.
   (2) Any officer or employee who participates in the retirement
system of a contracting agency as defined in paragraph (2) of
subdivision (g) that has elected to become subject to this part,
except persons employed less than half time or who are otherwise
determined to be ineligible.
   (3) Any annuitant of the Public Employees' Retirement System
employed by a contracting agency as defined in subdivision (g) that
has elected to become subject to this part who is a person retired
under Section 21228.
   (c) "Carrier" means a private insurance company holding a valid
outstanding certificate of authority from the Insurance Commissioner
of the state, a medical society or other medical group, a nonprofit
hospital service plan qualifying under Chapter 11A (commencing with
Section 11491) of Part 2 of Division 2 of the Insurance Code, or
nonprofit membership corporation lawfully operating under Section
9200 or Section 9201 of the Corporations Code, or a health care
service plan as defined under subdivision (f) of Section 1345 of the
Health and Safety Code, or a health maintenance organization approved
under Title XIII of the federal Public Health Services Act, that is
lawfully engaged in providing, arranging, paying for, or reimbursing
the cost of personal health services under insurance policies or
contracts, medical and hospital service agreements, membership
contracts, or the like, in consideration of premiums or other
periodic charges payable to it.
   (d) "Health benefits plan" means any program or entity that
provides, arranges, pays for, or reimburses the cost of health
benefits.
   (e) "Annuitant" means:
   (1) Any person who has retired within 120 days of separation from
employment and who receives any retirement allowance under any state
or University of California retirement system to which the state was
a contributing party.
   (2) A family member receiving an allowance as the survivor of an
annuitant who has retired as provided in paragraph (1), or as the
survivor of a deceased employee under Section 21541, 21545, 21546, or
21547 or similar provisions of any other state retirement system.
   (3) Any employee who has retired under the retirement system
provided by a contracting agency as defined in paragraph (2) of
subdivision (g) and who receives a retirement allowance from that
retirement system, or a surviving family member who receives the
retirement allowance in place of the deceased.
   (4) Any person who was a state member for 30 years or more and
who, at the time of retirement, was a local member employed by a
contracting agency.
   (f) (1) "Family member" means an employee's or annuitant's spouse
and any unmarried child (including an adopted child, a stepchild, or
recognized natural child who lives with the employee or annuitant in
a regular parent-child relationship).  The board shall, by
regulation, prescribe age limits and other conditions and limitations
pertaining to unmarried children.
   (2) Notwithstanding paragraph (1), this paragraph shall apply only
to state employees, as defined in Section 19815, that are in State
Bargaining Unit 5.  "Family member" only means an employee's legal
spouse and any unmarried child, adopted child, stepchild, recognized
natural child, or legal ward living with the employee in a regular
parent-child relationship.
   (g) "Contracting agency" means:
   (1) Any contracting agency as defined in Section 20022, any county
or special district subject to the County Employees Retirement Law
of 1937 (Chapter 3 (commencing with Section 31450) of Part 3 of
Division 4 of Title 3), and any special district, school district,
county board of education, personnel commission of a school district
or a county superintendent of schools.
   (2) Any public body or agency of, or within California not covered
by the Public Employees' Retirement System or subject to the County
Employees Retirement Law of 1937 (Chapter 3 (commencing with Section
31450) of Part 3 of Division 4 of Title 3), that provides a
retirement system for its employees funded wholly or in part by
public funds.
   (h) "Employer" means the state, any contracting agency employing
an employee, and any agency that has elected to become subject to
this part pursuant to Section 22856.
   (i) "Special district" means a nonprofit, self-governed public
agency, within the State of California and comprised solely of public
employees, performing a governmental rather than proprietary
function.
  SEC. 92.  Section 22754.5 of the Government Code is repealed.
  SEC. 93.  Section 22754.7 of the Government Code is repealed.
  SEC. 94.  Section 22754.11 of the Government Code is repealed.
  SEC. 95.  Section 22825.3 of the Government Code is amended to
read:
   22825.3.  (a) Notwithstanding Sections 22825, 22825.1, and
22825.2, state employees who become state members of the Public
Employees' Retirement System after January 1, 1989, and who are
included in the definition of state employee in subdivision (c) of
Section 3513 shall not receive any portion of the employer's
contribution payable for annuitants, pursuant to Section 22825.1,
unless these employees are credited with 10 years of state service as
defined by this section, at the time of retirement.
   (b) Notwithstanding Sections 22825, 22825.1, and 22825.2, a state
employee who became a state member of the Public Employees'
Retirement System after January 1, 1990, and is either (1) excluded
from the definition of state employee in subdivision (c) of Section
3513;  or (2)  a nonelected officer or employee of the executive
branch of government who is not a member of the civil service, shall
not receive any portion of the employer's contribution payable for
annuitants, pursuant to Section 22825.1, unless the employee is
credited with 10 years of state service as defined by this section,
at the time of retirement.
   (c) The percentage of employer contribution payable for
postretirement health benefits for an employee subject to this
section shall be based on the member's completed years of credited
state service at retirement as shown in the following table:


                                                 Percentage
     Credited Years                             of Employer
       of Service                               Contribution
         10 ................................        50
         11 ................................        55
         12 ................................        60
         13 ................................        65
         14 ................................        70
         15 ................................        75
         16 ................................        80
         17 ................................        85
         18 ................................        90
         19 ................................        95
         20 or more ........................       100

   (d) This section shall apply only to state employees who retire
for service.
   (e) Benefits provided to an employee subject to this section shall
be applicable to all future state service.
   (f) For the purposes of this section, "state service" shall mean
service rendered as an employee or an appointed or elected officer of
the state for compensation.  In those cases where the state assumes
or has assumed from a local public agency a function and the related
personnel, service rendered by that personnel for
                              compensation as employees or appointed
or elected officers of that local public agency shall not be
credited, at retirement, as state service for the purposes of this
section, unless the former employer has paid or agreed to pay the
state agency the amount actuarially determined to equal the cost for
any employee health benefits which were vested at the time that the
function and the related personnel were assumed by the state.  For
noncontracting local public agencies the state department shall
certify the completed years of local agency service to be credited to
the employee to the Public Employees' Retirement System at the time
of separation for retirement.
   (g) Whenever the state contracts to assume a local public agency
function, completed years of service rendered by the personnel for
compensation as employees or appointed or elected officers of that
local public agency shall be credited as state service only upon a
finding by the Department of Finance that the contract contains a
benefit factor sufficient to reimburse the state for the amount
necessary to fully compensate the state for postretirement health
benefit costs for those personnel.
   (h) This section shall not apply to employees of the California
State University or the Legislature.
  SEC. 96.  The provisions of the following memoranda of
understanding prepared pursuant to Section 3517.5 of the Government
Code and entered into by the state employer and the following
employee organizations in 1999, which require the expenditure of
funds, are hereby approved for the purposes of Section 3517.6 of the
Government Code:
   (a) Unit 16--Union of American Physicians and Dentists.
   (b) Unit 17--California State Employees Association.
   (c) Unit 18--California Association of Psychiatric Technicians.
   (d) Unit 19--American Federation of State, County and Municipal
Employees.
  SEC. 97.  Notwithstanding Section 3517.6 of the Government Code,
the provisions of any memorandum of understanding that require the
expenditure of funds shall become effective even if the provisions of
the memorandum of understanding are approved by the Legislature in
legislation other than the annual Budget Act.
  SEC. 98.  Any provision in a memorandum of understanding approved
by any section of this act that requires the expenditure of funds
shall not take effect unless funds for these provisions are
appropriated by the Legislature. If funds for these provisions are
not appropriated by the Legislature, all or any part of the
memorandum of understanding may be declared null and void by any
affected employee organization.
  SEC. 99.  The sum of two hundred thousand dollars ($200,000) is
hereby appropriated from the General Fund for transfer to the State
Employee Scholarship Fund, as created by Section 19995.5 of the
Government Code, to provide for the establishment and administration
of the state employee scholarship program.  Any additional funds for
subsequent fiscal years shall be transferred from the amount
appropriated in the annual Budget Act for employee compensation.
  SEC. 100.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  The facts constituting the necessity are:
   In order for the provisions of this act to be applicable as soon
as possible in the 1999-2000 fiscal year and thereby facilitate the
orderly administration of state government at the earliest possible
time, it is necessary for this act to take effect immediately.
